100%Issuing A foreign Commercial Investment License
Issuing a 100% Foreign-Owned Commercial Investment License
A definition of the service for issuing a 100% foreign-owned commercial investment license It is a service provided by the Saudi Ministry of Investment that enables foreign investors to establish companies with 100% foreign ownership within the permitted commercial sectors in the Kingdom. This license allows for the legal and official practice of wholesale, retail, and e-commerce activities in the Saudi market without the need for a local partner.
Steps for issuing a 100% foreign-owned commercial investment license
Submitting the license application through the Ministry of Investment's platform along with the required legal documents, such as the parent company's commercial registration (authenticated and translated), recent financial statements, and the articles of incorporation.
Verifying that the investment activity meets the conditions and is not listed among the activities prohibited for foreign investment.
Paying the license issuance fees, which vary depending on the type of activity and nature of the work.
Issuing the license after official approval, after which the procedures for establishing and registering the company with the Ministry of Commerce can be completed, and files can be opened for the entity with government agencies such as the Zakat and Tax Authority and the General Organization for Social Insurance.
Obtaining work visas for foreign managers and employees as needed and in accordance with applicable regulations.
The importance of a 100% foreign-owned commercial investment license
Enabling foreign investors to enter the Saudi market with full ownership benefits, without the need for a Saudi partner.
Supporting the diversification of the Saudi economy and attracting foreign direct investment in the trade and services sector.
Providing legal protection and compliance with Saudi regulations, which enhances investor confidence in the market.
Facilitating employment and recruitment operations through streamlined visas for foreign managers and employees.
Opening up opportunities for commercial expansion within a regulated environment that is consistent with Saudi Vision 2030.
Basic conditions and procedures
The minimum required capital for practicing wholesale and retail activity is 30 million Saudi Riyals.
All documents and certificates must be authenticated and certified according to the regulations by the Saudi embassy in the countries of origin.
The applicant for the license must not have any final court rulings against them in cases related to investment or commercial activity.
Adherence to the permitted activities offered by the Ministry of Investment and the guide of permitted business activities.
Potential challenges and difficulties
Requirements for authenticating and translating the parent company's documents, which may increase the time required to issue the license.
The high cost of initial fees and investments compared to some local investments.
A precise evaluation of financial solvency and investment plans to ensure the application matches the standards.
Similar procedures are applied to entities with full foreign ownership, which require coordination with several government agencies.
Target Sector
General
Affiliated Authority
Ministry of Investment
Estimated Duration4 days
Gov Approval Window5 working days
Service Pricing9936
Government Fee12000
Mandatory Conditions
✓Payment of fees within 15 days.
✓This service is limited to foreign companies that act at least in 3 regional or global markets.
✓For the 100% foreign companies' minimum capital required to practice wholesale and retail trade activity to be 30 million SAR.
✓In case that one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners' data while submitting the electronic application.
✓The company is committed to achieve many standards during the first five years, as following: 1- To be committed to Saudi employment rate as determined by the Ministry of Human Resources and Social Development. 2- To develop and implement a program to assign Saudis to Leadership positions in the first five years and ensuring its continuity. 3- To be committed to train at least 30% of Saudi employees annually.
✓The company is committed to one of the following conditions: 1- To be committed to invest an amount of no less than 300 million SAR, including 30 million SAR - the company’s cash capital over a period of 5 years starting from the date of obtaining the investment license. 2- To be committed to invest an amount of no less than 200 million SAR, including 30 million SAR - the company’s cash capital over a period of 5 years starting from the date of obtaining the investment license.
✓If one of the two options cannot be completed, a commitment is made in manufacturing: 30% or more of the company’s products distributed locally are manufactured in Saudi Arabia, and in research and development programs, 5% or more of total sales to establish research and development programs in Saudi Arabia, and in logistics and distribution services, establishing a center to provide these services and to provide after-sales services.
✓For the company's capital not to be less than 30,000,000 SAR.
✓Required Data: (Email - Absher Phone Number - Phone Number in the Company's Country - Commercial Activities - Partners IDs - City in which the License is Requested)
Required Documents
✓The financial statements of the three regional companies for the last financial year certified by the Saudi embassy.
✓A copy of the commercial register of the establishments participating in at least 3 regional or global markets certified by the Saudi Embassy.
✓Articles of Association of the three regional companies certified by the Saudi embassy.